Washington — President Donald Trump’s tax reform plan released yesterday addresses several policy priorities of the National Lumber and Building Material Dealers Association (NLBMDA), including repeal of the estate tax and reduction of the income tax rate for pass-through businesses. The proposal is a positive development in passing comprehensive tax reform for the first time in over 30 years.
NLBMDA has long held that the estate tax should be fully and permanently repealed, which would allow family-owned businesses to more easily be passed on to the next generation. Rep. Kristi Noem (R-SD) and Sen. John Thune (R-SD) earlier this year introduced the Death Tax Repeal Act (H.R. 631, S. 205) that would permanently repeal the federal estate tax. NLBMDA has joined over 60 other national organizations in support of the legislation.
The tax reform proposal also cuts the income tax rate for pass-through businesses to 15 percent. Corporate income tax rates would also drop to 15 percent under the plan. NLBMDA has pushed for tax rate parity for small businesses, such as those structured as partnerships and limited liability companies, to help spur investment and economic growth.
Caution is needed though regarding the mortgage interest deduction. President Trump’s tax proposal keeps the popular tax incentive; however, it doubles the standard deduction and repeals the state and local tax deduction. Those changes would cause fewer homeowners to claim the mortgage interest deduction and would be a major change to the nation’s housing policy.
“NLBMDA thanks the Trump Administration for its commitment to passing comprehensive tax reform that includes repeal of the estate tax,” said Jonathan Paine, President & CEO of the NLBMDA. “We look forward to working with Congress and the White House on a plan that addresses the needs of the lumber and building material industry.”
Comprehensive tax reform is needed to restore and sustain economic growth, and NLBMDA stands ready to continue its work advancing policies that help lumber dealers and the housing industry.